How Does Your LGU Earn and Spend? 

Does your LGU spend according to what your community needs? 
We want to help you answer these questions through our second infographics series called LGU Incomes & Expenditures. By its name, this is our attempt to present in a simple and practical way the usually complex government data on the funds which LGUs in pre-selected areas generate, receive and spend for during specific periods. These data enable citizens to better engage their respective LGUs on critical areas such as how they could increase incomes, how they could better manage their resources yearly, and how else they should spend in response to people’s needs.

But first, here’s a simple user guide on some important definitions:

On incomes:

1. Locally-generated funds: tax and non-tax revenues which the LGU collects, including real property and business taxes, franchise tax and taxes from quarried resources. Non-tax revenues refer to permits, licenses, and other service fees charged

2. Internal Revenue Allotment (IRA): the LGU’s share from the incomes of the national government

3. Other external funds: received through the province’s shares from national tax collections, donations or aids, and other funds received from government agencies

On expenditures:

1. Total current operating expenditures: the expenses for all LGU services (administrative, economic, education, health, housing, and social welfare)

2. General services: spent for services which LGUs need to do basic daily tasks like lawmaking, public order and safety, and research
3. Economic services: spent for projects and activities that aim to promote economic growth, e.g. water systems, tourism, and livelihood
4. Capital outlay: investments on assets, equipment, and infrastructure (e.g. buildings, roads, and power supplies
5. Debt servicing: payment for principal payments over a period and its interest
You could also check our first infographic series called "Understanding LGU Incomes" here. 

Click away, understand better, do something about it and share!